Bovis Homes remains confident there will be enough demand to boost business profits [GETTY - Picture Posed By Models]

Bovis said its interim results should easily top last year’s after the number of homes it completed in the six months to June rose 54 per cent to a first-half record of 1,487.

The group attributed the rise to investment in new land and an improving housing market. Its average sales price climbed 11 per cent to £210,000, driven by a focus on family homes and higher house prices.

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The Bank of England has voiced concern about a price boom and bust if valuations continue to rise, particularly in London. It has responded by capping loans relative to borrowers’ incomes and forcing banks to take account of ability to pay if interest rates rise.

But chief executive David Ritchie said Bovis expected to maintain its sales rates, saying prices in the English regions were not spiralling out of control and it was seeing a steady flow of good quality buyers.

“Outside London prices are rising but they’re logical in terms of the rate of increase,” he said. Shares in Bovis fell 12p to 778½p.